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SYRACUSE — A former Dairylea administrator has admitted stealing nearly $600,000 from the upstate New York milk cooperative over seven years.
Cheryl Nelli, 54, of DeWitt, pleaded guilty in federal court to mail fraud for diverting Dairylea payments from May 2002 to May 2009.
The Syracyuse-based cooperative collects milk from 2,300 Northeastern dairy farmer members and sells it to processors, then sends monthly payments to the farmers.
Assistant U.S. Attorney Edward Broton says Nelli admitted she'd been inflating the amount owed to farmers and created phony third parties which she would pay.
Broton said the farmers were paid the proper amount they were owed each time.
Dairylea spokeswoman Karen Cartier says there was no financial harm to members and the cooperative expects to recover the funds.
